K. NARASIMHA RAO vs T.M. NASIMUDDIN AHMED

The Supreme Court held that under Section 7(2) of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960, a tenant cannot be deemed to have committed wilful default in rent payment if an excess advance amount is available with the landlord for adjustment against arrears. The Court upheld the High Court's decision that the tenant's payment of Rs.2850/- as excess advance negated the claim of wilful default for the period of July to November 1990. Consequently, the appeal by the landlord was dismissed, affirming the tenant's position.